The Standard and Poor’s downgraded Thursday by two notches the long-term rating of Areva, passing it from BB + to BB-, due to a much higher debt than expected in 2014, according to a statement.
At the end of 2014, net debt was 5.8 billion euros, while SP was counting on 5.2 billion euros. The agency is also concerned about a lack of competitiveness and cost overruns on several large contracts.
In addition, the medium-term industry trends are difficult, says SP, with customers in pressure to rein in their spending, which affects prices. Some contracts of French nuclear specialist were also delayed or canceled, reducing cash.
too high costs
“In this environment, Basic Areva cost is too high and the benefits will surely be down in 2015, “the statement said.
Commenting on the extensive recovery plan submitted by the group, SP stresses that it take full effect in 2017 and questioned its implementation. “The wage bill, which represents a cost of 3.5 billion euros in 2014, may not be able to be reduced by 15% from our point of view,” said SP.
Areva cornered with a record loss in 2014 close to 5 billion euros, announced Wednesday a comprehensive plan of savings and transfers to rectify its accounts but presented in mid-2015 ads on the social aspect and its bailout.
Short-term rating remains unchanged at B. These notes are also accompanied by a neutral perspective, which means that S & amp; P can either raise or lower the medium term. SP considers in this context “the possibility of a stabilization or improvement of Areva profile linked to the outcome of discussions with the French state, the new investors, and EDF.”
ALSO READ:
“Areva provisions and impairments cause loss record
” Emmanuel Macron: “We need a convergence between Areva and EDF”
No comments:
Post a Comment